Apar Industries Ltd

Formation of board-level committee (Corporate Social Responsibility and Sustainability (CSR&S) Committee) to enhance the focus on sustainability. [...] Subsequently, the Corporate Social Responsibility (CSR) Committee was renamed as Corporate Social Responsibility & Sustainability (CSR&S) Committee. The purpose of this committee is to review sustainability goals, ESG risks and opportunities, ESG targets, and performance against established sustainability metrics, as well as sustainability-related policies, programs, and initiatives. The sustainability issue is a scheduled agenda item in every board meeting (standing agenda item), and the CSO (Chief Sustainability Officer) is a permanent invitee to this meeting.

###### ESG governance & Board oversight\n\nOur governance structure follows the international best practices by integrating the Environmental, Social and Governance considerations in all our business decisions. It ensures that ESG performance monitoring and decision making permeates through different levels in the organization.\n\nAPAR has adopted a three-tier governance structure:\n\n1) At the top of the pyramid is the APAR Board of Directors. They provide overall direction to our sustainability efforts. The Chairman & Managing Director (CMD) has oversight of the sustainability agenda that includes climate change. He, along with the Managing Director (MD), conducts regular meetings with the Sustainability Steering Committee to monitor and review progress of the ESG related commitments of the Group. Under their guidance, the company has committed to reducing carbon emissions intensity by another 10% by 2023-24 in line with our de-carbonization initiatives.\n\nAPAR Board of Directors\n\nSustainability Steering Committee\n\nSustainability Champions\n\n3 tier Governance Architecture is adopted for Sustainability\n\n2) Steering Committee: A sustainability steering committee consisting of leadership (manufacturing & business) from all the three businesses at APAR, convene meeting regularly where the following are discussed:\n\n - progress made by the Sustainability Champions in terms of implementation of ESG initiatives against the agreed targets\n\n - review of targets\n\n - budgets are approved or taken up for Board approval as the case may be\n\n - discussion on climate related risks and opportunities\n\n - sharing of developments in industry and sustainability related regulations\n\n - discussion on best practices\n\n3) Sustainability Champions: APAR had identified sustainability champions who represent our various businesses, geographies and functions. They explore and identify various GHG reduction projects which are then discussed, debated, analyzed and approved before we decide to take them up for implementation. Sustainability Champions drive the implementation of these projects. These champions also sensitize other employees of APAR on environmental issues through various online awareness programs.

Our Sustainability Steering Committee convenes meeting every month where the progress made by the Sustainability Champions in terms of implementation of climate risk management initiatives are discussed, goals are reset if necessary, budgets are approved or taken up for board approval as the case may be, developments in industry and sustainability related regulations are shared and best practices are discussed. Our decision to voluntarily participate with CDP climate disclosures 2022 was discussed and approved in one such meeting and our decision to come out with this publication was also initiated, discussed. debated and finally taken up for board level approval in another such meeting. The committee has set clear path forward for the journey of sustainability in alignment with the relevant SDGs, with specific focus on SDG 13 Climate Action.